Attorney General Kane rejects Pennsylvania lottery contract

Source: Pittsburgh Post Gazette

HARRISBURG -- Attorney General Kathleen Kane announced today she has rejected a contract for the private management of the Pennsylvania Lottery.

The attorney general said in a memorandum that the 20-year management agreement with Camelot Global Services LLC is an "unlawful extension of executive authority" that infringes on the power of the General Assembly to make basic policy decisions.

She said also state law governing the lottery does not authorize the development of monitor-based games, such as keno. And she said a provision for the compensation of indirect expenses by Camelot is too open and undefined to be allowed under the state Constitution.

Camelot, which operates the United Kingdom lottery, pledged to bring in more than $34 billion in profits over a 20-year management contract, in part by introducing online ticket sales and keno.

I shouted HOORAY when I read this. Our gutsy new Democratic Attorney General will be GOP Governor Tom, I-never-saw-a-state-service-I-didn't-want-to-hand-over-to-privatizers-who-give-me-campaign-donations, Corbett's worst nightmare! Pennsylvania has one of the top-performing lottery operations in the country - just came off a record year for profits, which go to senior citizens. When Corbett put it up for sale, only one bidder showed up - a private British company just purchased by the Canadian retiree pension program. NO guarantee they would actually deliver on their promised profits. In Illinois, which had a terribly performing lottery, the state sold out to a private operator and is now involved in costly lawsuits because the private operator couldn't live up to its contractual obligations.

On top of that, Corbett wanted to expand the lottery to further types of gambling - which fits in just perfect for the GOP - an addiction driven source of funds, playing on the desperate hopes of the poorest. Show me a damn one percenter who plays the lottery!

I'm also counting on the new Democratic Attorney General to do a scathing investigation of Corbett's piss-poor performance when Corbett was Attorney General and slow-walked the Jerry Sandusky investigation and prosecution to avoid making waves with Penn State alumni while Corbett campaigned for Governor.

4. Next we need the new Dem. Auditor General to evaluate the likelihood of the promised income

to the state. In Illinois, the private operator was not able to deliver. Corbett's next step may be to try to ram enabling legislation through the GOP controlled state legislature, which means bribing each and every GOP Senator and representative. If we Dems, via the Auditor General, court appeals, etc. can stall this for the current two year session, there's a good chance we'll have a new Democratic governor to veto such legislation.

6. She's already appointed a special prosecutor - from OUTSIDE the AG's office!

"H. Geoffrey Moulton Jr., an associate professor at Widener University School of Law and a one-time first assistant in the U.S. Attorney's office in Philadelphia, will oversee the review.
12219883-large.jpg View full size H. Geoffrey Moulton Jr. File

"As special investigator, Moulton in 1993 led a widely-praised investigation into the controversial federal raid on the Branch Davidian compound near Waco, Texas, for the U.S. Treasury Department, which has oversight of the federal Bureau of Alcohol, Tobacco and Firearms.

And I hope Kane carefully screens the holdover attorneys from Corbett's AG years. I know one who was/is a state GOP committeewoman and one of the most rapid Republicans I've ever had the misfortune to know. I wouldn't trust her for a New York minute not to leak any info about the investigation of Corbett, or anything else going on in the AG's office, to Corbett.

5. Great news! Rethugs control both state houses and the gov. seat. We need A.G. Kane to fight!

In Pennsylvania, the Rethugs want to undercut the Dems by every underhanded means which may be possible. The federal congressional districts seats are already gerrymandered in favor of the Rethugs, and now they want to have PA's electoral votes allocated by congressional district rather than by the long-standing "winner-take-all" method. If allocation by congressional districts had been in place in 2012, President Obama would have won only 7 of the state's 20 electoral votes.

Also, Corbett wants to privatize the state liquor stores in order to dissolve the state liquor store employee's union block, which is comprised largely of Democrats.

I am elated that Attorney General Kathleen Kane (newly elected in 2012) is taking on Corbett and his cohorts.

10. Our new AG is not an old, white, male Republican.

11. True

and she didn't buckle to the pressure that was being put on her from various factions within the Governors Office or from some legislators.

From what I've seen of her reasons, they seemed pretty sound. They'll be challenged in some fashion. I don't believe the PA Supreme Court would have jurisdiction unless someone challenges the connection to the Gaming Laws.

The law allowing the attorney general to review contracts also provides for an appeal to the Commonwealth Court. All Commonwealth Court decisions can, in turn, be appealed to the Pennsylvania Supreme Court.

"When responding to polls, Corbett supporters have often noted that Ed Rendell and Tom Ridge suffered similar slumps during their first terms but each won re-election with relative ease.
A graph produced by F&M (below) shows that Rendell and Ridge did indeed suffer the first term doldrums. But neither man ever saw approval numbers as low as Corbett’s today. And for Corbett to parallel Rendell, for example, he’d need to turn his numbers around starting this month. Ridge began to improve after 13 months in office; Rendell began to improve at the two year mark (where Corbett is today).

"In fact, Corbett finds little quarter in any segment of the state’s population. Only Republicans view him favorably (42% to 24%) as well as self-identified born again or fundamentalist Christians (37% to 27%). Among every other demographic shown – age, education level, income, geographic region, anything – Corbett is viewed negatively.

"His best region is central Pa., where he’s just five points in the red (32% to 37%). The worst is Allegheny, where he’s under water 11% to 55%." (end of quotes from article)

Having the lowest approval rating fits in with having the lowest IQ of any PA Governor. Take note, he couldn't get admitted to any Pennsylvania law school (Pitt, Duquesne, Temple, Dickinson) and, apparently not even getting in to what is traditionally referred to as one's back up choice of schools, ended up taking a temp high school teaching job for a year before getting accepted by a 3rd rate law school in Texas.

26. Latest comments from AG Kane

"It is disingenuous to put the cart before the horse by promising money to people in need, based upon a contract, before making sure that that contract was legal, and then blaming the messenger when it is deemed illegal," she continued.

In making the determination, Ms. Kane said in a statement, she relied upon the advice of Mr. Mulle and the attorney in charge of the office's civil division, both of whom worked for Mr. Corbett when he was attorney general.

The decision was roundly applauded by Democrats, including both of Ms. Kane's fellow row officers. Treasurer Rob McCord, who has said he is considering running for governor, previously said he would not authorize spending for expanded gambling until he was assured it was legal.
"Expanding the lottery is a policy decision that should include the General Assembly, not be done through a closed-door contracting process," he said.

House Minority Leader Frank Dermody, D-Oakmont, said he would push for even greater increases in the upcoming budget for programs benefiting seniors, and Senate Minority Leader Jay Costa, D-Forest Hills, said the lottery could be changed to generate more revenue while remaining under state management.